CHINA’S MOUTHPIECE WARNS INDIA OVER NEW COLD WAR

Global Times, a Chinese publication long considered to reflect the views of the ruling Communist Party, warned India against becoming a ‘US pawn’ in the new Cold War between China and the West, saying its economy could suffer as a result. It said in a commentary that India has little to gain from engaging in a US-China conflict, and said the Modi government must face the new geopolitical developments objectively and rationally. US and China are currently locked in an escalating rivalry over the coronavirus, trade and numerous other issues.

Chinese Mouthpiece Warns India

As US-China tensions escalate over a wide range of issues covering almost every realm, some are predicting that the World’s two largest economies are about to enter a new cold war.

At this juncture, India needs to be careful about being involved in the US-China rivalry. “Such irrational voices are nothing but misleading, which should not represent the mainstream voices and sway the Indian government’s stance. Fundamentally speaking, India has little to gain from engaging in a US-China conflict over any topic, with more to lose than gain, which is why Modi government needs to face the new geopolitical developments objectively and rationally,” Beijing said.

What Global Times Said

Threatening New Delhi of snapping economic ties, Beijing further said, “If in a new Cold War, India leans toward the US or becomes a US pawn attacking China, the economic and trade ties between the two Asian neighbors will suffer a devastating blow. And it would be too much for the Indian economy to take such a hit at the current stage,”

How China can hurt India Economically

India’s trade deficit with China was 391.7 Billion Yuan ($56.8 billion) in 2019, an official from China’s General Administration of Customs (GAC) said. Total bilateral trade was 639.5 Billion Yuan (about $93 billion) in 2019, up 1.6 percent year-on-year. China’s exports to India stood at 515.6 Billion Yuan (about $75 billion), up 2.1 percent, and India’s exports to China totaled 123.9 Billion Yuan ($18 billion), down 0.2 percent year-on-years. So even if China stops trade with India, the Indian economy will just end up saving 56 billion U.S dollars.

However the problems can arrive if China stops export of API, manufacturing components or electronic hardware immediately.

Why China feeling jittery

Trump has announced expansion of G-7 group where India will be a member.

UK has proposed a D-10 group to keep China out of 5G.